In re Adobe Trucking, Inc.

2011 WL 6258233 (2011)

From our private database of 46,500+ case briefs, written and edited by humans—never with AI.

In re Adobe Trucking, Inc.

United States Bankruptcy Court for the Western District of Texas
2011 WL 6258233 (2011)

JC

Facts

Four related Texas businesses (the Adobe businesses) (debtors) involved in oil drilling had Adobe in their names. The Adobe businesses entered into a five-year revolving credit and security agreement for $37.5 million in 2006, later increased to $47.5 million in 2007, with PNC Bank, N.A. (PNC) (creditor) as the lead bank of the creditors. The creditors were granted a security interest in the assets of the Adobe businesses, including equipment and inventory, to secure the provided credit. When the price of oil dropped substantially, the Adobe businesses were shut down. In December 2008, PNC sent notice of a public foreclosure sale to the Adobe businesses. The sale was advertised by a notice of sale placed for one day in the Dallas Morning News, the Odessa American, and the Midland Reporter-Telegram newspapers. The Adobe businesses refused to turn over the collateral prior to the sale. PNC was the winning bidder at the foreclosure sale with a credit price of $41 million. Prior appraisals of the collateral had valued it at either $33.85 million or $81 million. After state court wrangling to try to prevent the sale, one of the Adobe businesses eventually filed a Chapter 11 bankruptcy. The prior suit was removed from state court, and the Adobe businesses made a crossclaim that the PNC foreclosure sale was not commercially reasonable. Under the controlling law of New York, every aspect of the sale of collateral must be commercially reasonable, “including the method, manner, time, place, and other terms.” The Adobe businesses attacked the price obtained, the means of advertising the sale, the failure of PNC to repair or clean up the collateral or make it available for inspection, the decision to conduct a public sale, and the small number of bidders on the collateral as constituting commercially unreasonable aspects of a sale.

Rule of Law

Issue

Holding and Reasoning (King, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 832,000 law students since 2011. Some law schools even subscribe directly to Quimbee for all their law students.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

Here's why 832,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,500 briefs, keyed to 994 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 832,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,500 briefs - keyed to 994 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership